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The Department for Business, Innovation and Skills is to name and shame businesses which fail to pay the minimum wage.

Employers have three months to get their houses in order. From 1 January 2011 the Department will make public the names of firms which fail to meet minimum requirements.

HMRC and BIS today published their annual report into the minimum wage for 2009/2010. The Revenue has identified £4.4m which is owed to the lowest paid workers in the UK. About 19,000 people are owed £228 for the year, an 18 per cent increase on last year - £193 per worker in 2008/2009.

The announcement comes on the same day as minimum wage rates increase.

The new rates are: £5.93 per hour for low-paid workers aged 21 and over, increased from £5.80 and with the adult rate coming into effect at 21 rather than the previous 22; £4.92 per hour for 18-20 year olds, increased from £4.83; and £3.64 per hour for 16-17 year olds, increased from £3.57.

The Low Pay Commission reckons 970,000 people will benefit from the increases. ®